We're in the process of upgrading our clients to 8.0.2. We've found on the machines that have made the move to GW8 client, that every time they attempt to open a document that is in a shared folder (or the document library). We get an error:

Windows cannot find 'C:\Documents and settings\<username>\Local Settings\Temp\XPgrpwise\<filename>'". Make sure you typed the name correctly, and then try again. To search for a file, click the Start button, and then click search.

The file IS in the location, however it can't open the file. We've noticed that we can work around this by selecting a folder WITHOUT spaces in the path (notice that there is an unmatched double quote). ANY path with a space fails, any path without it doesn't.

Is this a known issue?